Which of the Following Would Be a "Non-Current Liability

question 61

Multiple Choice

Which of the following would be a "non-current liability"?

• A)Payment due after 3 years,but the company has violated the debt covenants.
• B)Payment due to a supplier 45 days after year end for supplies received before year end.
• C)Payment due to a supplier in 18 months for goods to be received 3 months after year end.
• D)Payment due after 3 years,on which the debt covenants have been not been violated.

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Definitions:

Assets

Resources owned or controlled by a business that are expected to produce economic value.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Creditors

Individuals or entities that are owed money by a debtor because they have provided goods, services, or loans.

Statement Of Changes In Equity

A financial statement that shows how the equity of a company has changed over a period due to various factors like profits, losses, and distributions to shareholders.